Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Endicott Interconnect Technologies Seeks Bankruptcy Protection
Author: Joel R. Glucksman
Date: August 2, 2013
Key Contacts
Back
Endicott Interconnect Technologies has filed for bankruptcy protection with the U.S. Bankruptcy Court in Utica, and says that layoffs may quickly follow.
The company, which was recently spun off from IBM in 2002 in the hopes of saving thousands of jobs, announced its plans to file for Chapter 11 protection and sell its assets to meet its creditor obligations. In its court filing, the company disclosed that it’s carrying $16.09 million in secured debt and $67.3 million in unsecured debt, according to Dow Jones Newswires. In addition, the company owes $4.49 million in rent to its landlord. Endicott, which produces microelectronics, listed between $10 and $50 million in assets.
The company cited fierce competition from foreign competitors and federal budget cuts as the causes of its financial issues. Endicott previously provided circuit boards to several U.S. companies, including IBM, Cisco Systems, and the Department of Defense, but it noted that the industry is largely moving to China. Endicott also noted that it has faced falling revenue since roughly 2009. During this period, it has been trying to overcome its financial struggles through several methods, including debt refinancing and new capital contributions. Three of the four company founders have cut their ties with the company, and remaining owner Jim Matthews Jr. stepped down as Endicott’s chief executive.
Endicott said it plans to continue its operations through the bankruptcy process, but discussed the possibility of laying off a percentage of its 600 employees. The company – which employed 1,100 workers in November 2012 – has already made significant cuts and limited its operational expenses, but the court issued an interim motion mandating the Endicott continue to pay its employees’ health care and benefits, according to Fox WICZ.
The company noted that it is currently in private negotiations with a potential purchaser that would serve as a stalking horse bidder during the proposed bankruptcy auction.
- Bankruptcy Protection
- Chapter 11
- Chapter 11 Bankruptcy
- Chapter 11 Bankruptcy Protection
- Filing Bankruptcy
- US Bankruptcy Court
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Before You Buy: Managing Real Estate and Permitting Risk for BESS Projects in New York and New Jersey
For developers pursuing battery energy storage system (BESS) projects, finding the right property is only the beginning. BESS site selection is as much a legal and transactional exercise as a real estate decision, with risk analysis central to the project’s ultimate success. Key Takeaways The core questions for BESS site selection in New York and […]
Author: Nicholas Wall
What Business Owners Get Wrong Before Meeting a Litigation Attorney
What should you expect when meeting a litigation attorney about a business dispute? You should expect to describe the dispute in your own words, hand over the most important documents, flag any deadlines or immediate threats, and leave with a clearer picture of the problem, what information is still needed, and the likely next steps. […]
Author: Michael Mietlicki
Arbitration vs. Litigation vs. Mediation: What New Jersey Businesses Should Know Before Signing a Contract
Arbitration resolves disputes privately before an arbitrator whose decision is usually final, while litigation resolves them in court with full rights of appeal. Whether a business ends up in arbitration or litigation is often decided when it signs the contract, long before any dispute arises. Key Takeaways When facing a contract dispute, carefully consider your […]
Author: Graham Staton
Can You Own Part of a New Jersey Business Without a Written Agreement?
Can you own part of a business in New Jersey without a written agreement? Yes, it is possible. Under New Jersey’s Uniform Partnership Act, a partnership can arise when two or more people carry on a business as co-owners for profit, whether or not they ever intended to form one. Ownership doesn’t necessarily depend on […]
Author: Michael Mietlicki
Crisis-Proofing Your New Jersey Business: Building a Crisis Response Plan Before You Need One
For New Jersey businesses, crisis preparedness should be viewed as a legal and operational function, not simply an emergency-management exercise. A well-designed crisis response plan can help preserve evidence, protect confidential communications, meet reporting obligations, limit unnecessary exposure, and prevent an already difficult situation from becoming a larger legal problem. Key Takeaways A serious crisis […]
Author: Sean M. Pena
Monmouth County's Next Development Wave: What Developers and Investors Need to Know
Monmouth County is entering a significant new phase of development. For those looking to acquire property or undertake a new project, understanding the market opportunity is only the beginning. The more important question is whether a particular property can actually be developed as contemplated and what approvals, agreements, and other conditions will be required to […]
Author: Donald M. Pepe
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.